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Manny's First 27 Games (or, the Marginal Product of Drug Use) June 4, 2010

Posted by tomflesher in Baseball, Economics.
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Last year, Manny Ramirez was suspended for 50 games on May 6. The suspension came after his 27th game of the season. On May 25th of this year, Manny played his 27th game of 2010. That means we can take a look at the first 27 games of each season, when he was using performance-enhancing drugs (in 2009) and when he wasn’t (presumably, this year). The differential line is behind the cut.

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Addendum on Pythagorean Expectation May 20, 2010

Posted by tomflesher in Baseball, Economics.
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I noted below that the sample size of 13 games is too small to make a determination as to whether the proportions of conditions expected to predict the winning team – the home team, the team with the higher Pythagorean expectation, the team with more runs scored, and the team with the higher run differential – is significantly different from chance. If chance were the only determinant of the winner, then we would expect each proportion to be .5, since you’d expect a randomly-selected home team to win half the games, a randomly-selected team with higher run differential to win half the games, and so on.

Making the standard statistical assumptions, the margin of error using proportions is \sqrt{\frac{p(1-p)}{n}} . Three of the proportions were .46, meaning that the margin of error would be \sqrt{\frac{.46(.54)}{13}} = \sqrt{\frac{.2484}{13}} which simplifies to \sqrt{.0191} = {.1382} . Using 12 degrees of freedom, a t-table shows that the critical value for 95% confidence  is 2.18. Thus, the binomial confidence interval method, tells us we can be 95% sure that the true value of the proportion lies within the range .46 ± 2.18*.1382 = .46 ± .30 = .16 … .76. Clearly, this range is far too large to reject the conclusion that the proportion is significantly different from .5.

For the simple measure of more runs, the proportion was .31, meaning that the margin of error is \sqrt{\frac{.31(.69)}{13}} = \sqrt{\frac{.2139}{13}} or \sqrt{.0165} = {.1283}. The 95% confidence interval around .31 is .31 ± 2.18*.1283 = .31 ± .2797 = .03 … .59. Again, .5 is included in this range.

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